ACCA Advanced Audit and Assurance (AAA) Practice Exam

What is the primary purpose of computer-assisted audit techniques (CAATs)?

1. To eliminate the need for human auditors

2. To provide auditors with statistical samples

3. To use computers as tools for auditing procedures

4. To automate financial reporting

The correct answer is: To use computers as tools for auditing procedures

The primary purpose of computer-assisted audit techniques (CAATs) is to use computers as tools for auditing procedures. CAATs enhance the auditor's ability to perform an audit by leveraging technology to analyze large volumes of data efficiently and effectively. They allow auditors to access and manipulate data directly from the client's information systems, perform detailed audits, and increase the precision and reliability of audit findings. By employing CAATs, auditors can conduct substantive tests and analytical procedures that would be impractical or impossible to carry out manually, especially in complex environments where significant amounts of data must be evaluated. This leads to improved audit quality and relevant insights for stakeholders. The other options, while related to auditing and technology, do not accurately reflect the primary intended use of CAATs. Specifically, CAATs do not eliminate the need for human auditors; rather, they serve as tools to enhance an auditor's capabilities. Additionally, while CAATs can provide statistical samples as part of some audit processes, this is not their main function. Automating financial reporting is more aligned with accounting software functions rather than specifically with the purpose of CAATs in the audit process.